Top Tips For Staying Financially In Control As A Small Business
It can be tough, running a small business. Finding new customers, staying within a budget, delivering good quality services or products, having a happy workforce, and keeping clients happy. It can be stressful.
Staying on top of and in control of money management is a constant headache for many small business owners. Some find accounts and keeping up with clients complicated and confusing. Some admit to burying their head in the sand when it comes to their finances.
However, it doesn’t need to be like this. Have a look below at some of the ways you can stay in financial control.
Have A Plan
If you are unsure of where you are heading, how are you going to get there or acknowledge you have arrived?
Writing a business plan should be a best practice rather than just used when applying for a loan. It can assist you when it comes to identifying where you are, and where you want to be short-term and long-term. These plans are crucial when it comes to understanding how well your business is running financially. Ake sure you include target, profit and loss, budgets, and cash flow forecasts.
Get To Know Your Financial Position
Make sure you monitor your bank account regularly. You should always know exactly how much cash you have got in the bank, and how much you expect to go into and leave your account each day. It’s easy to keep on top of this if you use mobile banking by downloading an app. You can even bank cheques online now, rather than needing to visit a branch.
Meet Tax Deadlines
Missing a deadline to pay your tax, VAT, or to file your return could lead ot you getting a hefty fine and a nasty amount of interest. Using an accountant is one of the best ways to keep on track, and also helps you to reduce your tax liabilities. Making sure your books are up to date on a weekly and monthly basis will help.
Chase Any Debts
Your business isn’t there to help someone else pocket or business, therefore, you shouldn’t let unpaid debts go a miss or let them extend too far. As awkward and uncomfortable it may be to ask for money, especially if it is more than once, you need to stand strong and forthright with a well-written letter/email setting out your payment terms. If you need to use a commercial collection agency if you are unsuccessful yourself.
Stick To A Tight Budget
Chances are, you’re not operating your business as efficiently as you can. Look through your bills and identify where you can make savings. This applies highly to energy. You may be surprised how much you can save just by reviewing your usual costs on a regular basis.
There is no point in sticking your head in the sand when it comes to your finances. It’s best to tackle them at face value and get on top of them. Is there anything else that you do to make sure you stay on top of your finances as a small business?
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